Yuga Labs, Magic Eden to Launch Pro-Royalty NFT Marketplace

A fresh NFT marketplace with obligatory royalty fees is slated to roll out by the end of 2023.

Bored Ape showing off in a magical eden with a fairy watching over him.
Created by Kornelija Poderskytė from DailyCoin
  • Yuga Labs teams up with Magic Eden for a creator-focused NFT platform.
  • Bored Apes NFT floor price, ApeCoin DAO’s $APE rebound double digits.
  • Yuga Labs fired shots at OpenSea for making creator royalty fees optional.

The Web3 giant Yuga Labs shook hands with Magic Eden to begin work on a new non-fungible token (NFT) marketplace. This brand new marketplace differs in its proactive approach to creator royalties, which were forfeited by many NFT marketplaces since mid-2022.

According to the latest information, Yuga Labs x Magic Eden NFT marketplace is slated to go live by the end of 2023, while the platform is confirmed to support Ethereum’s (ETH) blockchain. Yuga Labs and Magic Eden expressed support for creators, who deserve a “rewarding environment” and are “contractually obligated to receive royalties.”

Creator Royalties: Path to More Sustainable Web3?

Taking a stance in the ongoing discussion on enforced creator royalties, Yuga Labs CEO Daniel Alegre explained what the partnership represents for the Web3 community: “Together we are supporting the building of an Ethereum marketplace that will back creators, without whom Web3 would not exist”.

While many crypto traders were cheering the bold move on X, some also pointed out that an NFT project’s success heavily relies on the quality of the project, and royalty fees shouldn’t be the sole source of income for digital artists. Yuga Labs had previously banned its Otherside Mara NFT collection from OpenSea, Blur, and LooksRare.

The announcement of a royalty-focused NFT marketplace has made a positive impact on the NFT floor price of Bored Ape Yacht Club (NFT), which added 2% gains to a 21.9% weekly run. Currently, the cheapest BAYC NFT costs 28.01 ETH, or $53,150.

ApeCoin (APE) also recorded similar gains to a monthly high of $1.49. Cooking up 33.5% gains in the last two weeks, APE finds new utility cases through The ApeCoin Accelerator, powered by Animoca’s Forj.

On the Flipside

  • Magic Eden has adopted optional royalties since October 2022, sparking a heated debate in the NFT community, but later completely switching to a pro-royalty stance.

Why This Matters

This move shows a shift in stance by Web3 leaders, as the leading NFT marketplace, OpenSea, has dropped mandatory enforcement of creator royalty fees since August 2023.

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Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.